COST ACCOUNTING
TRANSFER PRICING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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10%
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100%
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8%
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10.5%
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Detailed explanation-1: -4.1.2 Doubtful Assets A doubtful asset was one, which remained NPA for a period exceeding two years. With effect from 31 March 2001, an asset is to be classified as doubtful, if it has remained NPA for a period exceeding 18 months.
Detailed explanation-2: -(D1 = doubtful up to 1 year, D2= doubtful 1 to 3 years, and D3= doubtful more than 3 years). For commercial banks 100 percent of the extent to which the advance is not covered by the realisable value of the security to which the bank has a valid recourse and the realisable value is estimated on a realistic basis.
Detailed explanation-3: -Banks should have total provisioning coverage ratio of not less than 70%. assets. Income from non performing assets is not recognized on accrual basis but is booked as income only when it is actually received. to income subject to availability of Margin.